Again this is just a guess on my part but as i aforementioned, due to SEC rules, the piecoin might have been conceived as an alternative to incentive Paypie customers/Paypie coin holders. Piecoin might be distributed as a form of dividend (note that i use the word a form to denote that its not an actual dividend) and the distribution could be exchanged on Paypie's platform for fiat. Since it's not the main coin associated with the project and only has internal use, i.e.( Paypie won't provide an exchange for it) this deflects any issue that the SEC rules might pose.
As for pegging to multiple currencies, am guessing they will peg it to the currency that's currently worth the most, and use exchange rates from that currency to pay out on other currencies. Again, am just guessing and none of this should be considered viable till statement is obtained from an admin
I think I have figured it out. But still guessing. I think you actually have it backwards. PPP tokens are the investment vehicle and PieCoin are stable stores of debit/credit value.
Assuming PPP are the PayPie tokens that are traded on the exchanges. PPP will be converted to PieCoin (PIE) for internal transactions in the PayPie market.
PIE are pegged to a several major currencies at the same time: a
currency basket. For the sake of argument, assume the currency basket is 1 PIE = $1.
You owe someone $300. Which means you are 300 PIE short.
PIE can only be exchanged through PPP tokens.
PPP tokens fluctuate, but according to the whitepaper the price per token starts at 1 PPP = 0.0011 ETH.
If the price of $300 = 1 ETH you need to buy 1/0.0011 = 909 PPP.
If PPP doubles in value, you need to buy 454 PPP instead. Your debt, in terms of currency basket value, has remained the same amount, ie. 300 PIE = $300.
If you were indebted 300 PPP instead of PIE, after PPP doubled in value you would owe $600.
Nice catch, and they can achieve that with PIE because it's only an internal token and it won't be put on exchanges. It's the only way to keep a token stable at the moment, there's this token, Corion in which devs claim that price will be always $1, isn't on exchanges yet but it will be on day, I'm going to grab a popcorn basket when their reserve to buy COR will finish (because at some point it will finish)
, really hope Paypie will get the investors!
